Replies to post #27866 on Lehman Brothers Financial SA (LEHNQ)

[winner79]

Section 8.13(c) of the Modified Third Amended Reorganization Plan, provides the following:

(c) To the extent that any Debtor has Available Cash after all Allowed Claims against that Debtor have been satisfied in full in accordance with Section 8.13(a) of the Plan, each holder of each such Allowed Claim shall receive its Pro Rata Share of further Distributions, if any, to the fullest extent permissible under the Bankruptcy Code in satisfaction of postpetition interest on the Allowed amount of such Claims at the rate applicable in the contract or contracts on which such Allowed Claim is based (or, absent such contractual rate, at the statutory rate) until such time as all postpetition interest on all such Allowed Claims has been paid in full.

In view of the above provision, LBHI cannot pay dividends unless and until the Allowed Claims POR VALUE are satisfied in full.

We can therefore assume that LBHI will redeem the Capital Trusts in full and simultaneously pay the entire dividends due with compounding interests on or before October 2013 after the September 2013 fourth distribution.